Rheinmetall Kraken starts series production in Hamburg

It has been a busy week for the UK’s Kraken Technology Group as the company’s JV with Rheinmetall starts series production of its uncrewed surface vessels. In the US, a new partnership with Anduril aims to increase its presence in that market.

By Sam Cranny-Evans, editor of Calibre Defence, published on April 21, 2026.

Rheinmetall Kraken, the joint venture between Kraken Technology Group and Rheinmetall (ETR: RHM), has started series production of the K3 Scout uncrewed surface vessel. According to an April 20 press release from Rheinmetall, production has started at the Blohm+Voss site in Hamburg.

Rheinmetall acquired Blohm+Voss in February, expanding the German’s prime’s portfolio into the maritime domain. As part of that acquisition, it was able to build upon the previous entity, NVL Kraken. NVL Kraken was formed by Kraken and NVL, part of the Lürssen Group which owned the Blohm+Voss shipyard in August 2025.

NVL had in turn acquired a stake in Kraken Technology Group some time ago, in anticipation of a growing demand for USVs. Now, working with Rheinmetall, the new entity has plans to produce up to 200 vessels like the K3 Scout per year. “We can scale up production to as many as 1,000 units annually,” Tim Wagner, CEO of Rheinmetall’s Naval Systems division said.

Kraken and Anduril

Kraken K5 USVs flank a K7 Sabre, a much larger design that will be produced in partnership with Anduril. Credit: Kraken Technology Group.

The Rheinmetall announcement came ahead of another, this time between Kraken and Anduril. An April 21 press release explains that the two companies will work together to produce the K7 Sabre and K5 Kraken USVs in the US under license. The K5 Kraken is larger than the K3, providing more than three times the payload at 2,000 kg. With an operating range of 1,000 nautical miles, it provides 350 additional nm of range over the K3.

The K7 Sabre is a much larger USV represented by the middle vessel in the concept image above. The K7 appears to fit into a similar bracket to those USVs being produced by HII and Saronic. It could indicate that Kraken will be able to bring larger platforms to Europe, as well as the US.

There is a wealth of opportunity for USVs in the US. Kraken has already proven this, securing a $49 million contract from the US SOCOM in November 2025. But there are many other opportunities and revised acquisition rules designed to prioritise speed. With several other competitors, however, it is possible that Kraken’s market traction – including contracts from the Royal Navy under Project BEEHIVE – help give it the edge.

Calibre comment: Hardware first, the key to Kraken’s success?

It has been around five years since the Kraken Technology Group was formed, and in that time, it has racked up a number of successes. Cracking the US market is hard. It’s hard for American companies, let alone British companies. But the Group’s $49 million contract from the US SOCOM suggests it has found a formula that works. That formula appears to be quite unique for modern startups: They put the hardware first.

A Kraken spokesperson explained that because they focus on making sure their hardware can work in difficult environments, they stand out. Other startups, and even some primes are putting software first. In this pitch, the role of hardware is often diminished by the assertion that software can compensate for hardware or even define the hardware’s performance. A defence customer, however, generally needs to see a product work and feel confident that it will do that when somebody is trying to cause harm. Each domain has its own demands, but the sea is unforgiving and unpredictable, which means that if the hardware fails, the software will not be able to compensate.

As the Group continues to grow and secure successes around the world, its model is definitely one worth watching. There are many UK companies looking to build their export portfolio, and Kraken has set a path that others could follow.

The lead image shows a Kraken K3 Scout manoeuvring in Hamburg harbour. Credit: Rheinmetall.